In the financial world, a white candlestick is completely symbolic. It is part of a visual representation of stock or security prices that is called candlestick charting. Candlestick charts provide specific information about trading highs and lows during market days or other time periods.

Candlestick charting is said to have been invented in Japan in the nineteenth century. It eventually became a common financial tracking tool in America and around the world. The candle stick chart still has various shapes and forms named in Japanese. Many of the auxiliary patterns in a candlestick chart reveal a lot about how a stock or security is traded over time.

In a candlestick chart, a “candlestick” shows the difference between the opening and closing prices of a security during a trading day or other time period. If the opening price was less than the closing price, the candlestick will be white. That means the price went up, and not down, during the trading period. If, on the other hand, the opening price was more than the closing price, and the price fell during the trading period, the candlestick will be black. For those who invested in a stock hoping for growth, a series of white candlestick patterns is desirable.

Ad

The candlesticks representing trading periods in candlestick charting are laid in a horizontal pattern that forms a combination of a bar graph and a plotted line. The candlestick chart also has other useful features like a “wick” that shows whether there were any prices higher or lower than the difference in opening and closing price. If so, that outlying price will be represented by a thin line coming out of the top or bottom of the black or white candlestick.

A candlestick chart helps with what financial experts called “technical analysis,” which involves looking at the past prices of a security as well as other information to determine how sound of an investment it is. The visual aid offered by the candle stick chart helps in decision-making about stocks and other investments. The display of daily candlesticks can show how interest in a stock is building or waning. In terms of the market for a specific stock, pros refer to white candlestick patterns and building interest as “bullish,” and waning interest as “bearish.” Overall, candlestick charts can be a critical part of getting a quick view of what a stock or equity has done in the past.

Discuss this Article

Post your comments

Please enter the code:

Login

Register

Make changes/additions/deletions to the article below, and one of our editors will publish your suggestions if warranted.

Optional: Explanation of your recommended changes

Thank You!

One of our editors will review your suggestion and make changes if warranted.
Note that depending on the number of suggestions we receive,
this can take anywhere from a few hours to a few days.
Thank you for helping to improve wiseGEEK!